Federal Prison Sentence for Multi-Million Dollar Cryptocurrency Fraud: Utah Man's $5M Scheme Dismantled

A Washington County resident faces 36 months of federal incarceration following his conviction in a sprawling cryptocurrency fraud operation that bilked at least 17 investors out of more than $2.9 million. Brian Garry Sewell, 54, was condemned for orchestrating wire fraud schemes and operating an unlicensed money transmitting business that processed over $5.4 million in bulk cash conversions into digital assets between 2017 and 2024.

The U.S. Attorney’s Office for the District of Utah announced the sentencing after Sewell pleaded guilty to multiple counts of wire fraud. Federal Judge Ann Marie McIff Allen imposed the imprisonment term along with 36 months of supervised release, and ordered the defendant to pay $3.6 million in restitution to victims.

The $5M Investment Trap: How the Scheme Defrauded Investors

Sewell’s criminal enterprise operated across two distinct phases. From December 2017 through April 2024, he systematically misled victims by claiming he possessed the expertise and educational credentials to generate substantial investment returns. Prosecutors documented that he obtained over $2.9 million from at least 17 separate investors through false promises and deceptive practices. Victims provided their funds and cryptocurrency assets believing they would receive professional portfolio management and high-yield returns, unaware their money was being diverted into Sewell’s personal accounts.

Unlicensed Crypto Operations: The $5.4M Cash-to-Digital Asset Pipeline

Between March and September 2020, Sewell operated Rockwell Capital Management as an illegitimate money transmitting service, effectively creating an unauthorized currency exchange operation. This entity converted more than $5.4 million in physical cash into cryptocurrency on behalf of third parties, many of whom were engaged in their own criminal activities—including fraud rings and drug trafficking organizations. Sewell charged transaction fees for each conversion, profiting from the illegal pipeline while knowingly facilitating money laundering and criminal proceeds concealment.

Federal Crackdown on Cryptocurrency Fraud

The conviction reflects broader federal efforts to combat misuse of digital assets in financial crime. Special Agent Robert Bohls of the Salt Lake City FBI stated: “The FBI will continue to put victims first by holding offenders accountable and pursuing those who misuse cryptocurrency and unlicensed financial services to exploit others.”

This case emerged amid escalating concerns about cryptocurrency-facilitated fraud. A recent Chainalysis report documented that $17 billion in cryptocurrency was lost globally to scams and frauds, with impersonation tactics, social engineering schemes, and AI-generated scams driving the surge in victimization. The intersection of emerging technology and traditional financial crime has created new challenges for law enforcement agencies.

Restitution and Court-Ordered Penalties

U.S. District Court Judge Ann Marie McIff Allen mandated that Sewell pay more than $3.6 million in restitution to defrauded investors as part of the wire fraud settlement. Additionally, the court ordered supplementary restitution payments to the U.S. Department of Homeland Security, reflecting the multi-agency involvement in investigating and prosecuting the case. The 36-month federal imprisonment sentence represents a significant penalty intended to deter similar unlicensed cryptocurrency operations.

The Sewell case underscores the vulnerability of retail investors to sophisticated fraud schemes that exploit cryptocurrency’s pseudonymous and boundary-less characteristics. His conviction signals that federal prosecutors and law enforcement will aggressively pursue those operating unlicensed financial services and cryptocurrency exchanges designed to defraud investors or facilitate criminal transactions. Potential victims should verify that any investment professional claiming cryptocurrency expertise holds proper licensing and regulatory approval before entrusting their assets.